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How Varo Money Is Giving Banks a Run for Their Money

Bank Accounts

How Varo Money Is Giving Banks a Run for Their Money

Have you heard of Varo?

It’s one of our best-kept — err, now shared — secrets.

Varo is a mobile-only bank account that operates through an easy-to-use iOS app. It combines the traditional banking tools you rely on with modern technology to help you become financially healthy.

But here’s why we really like it: Pair your Bank Account with a Varo Savings Account where you’ll earn 2.12%* Annual Percentage Yield (APY) with the opportunity to earn up to 2.80% APY on up to $50,000 in savings.

To qualify for the 2.80% rate, each month you’ll need to have monthly payroll or government direct deposits of $1,000 or more and authorize at least five purchases with your Varo debit card.

If that 2.8% APY doesn’t mean much to you, this might: That rate is 28 times — repeat, 28 times — the average savings account, based on a 0.10% average reported by the FDIC.

Sooo… there’s a catch, right? Some insanely high fees? Nope!

Varo goes easy on the fees. As long as you use one of the more than 55,000 Allpoint® ATMs in its affiliated network across the world, you won’t pay ATM fees.

Additionally, the minimum balance to earn interest in the savings account is just a penny; you’ll pay no monthly service fees, no minimum balance fees, no foreign transaction fees and no cash replacement fees. You’ll just pay any fees charged by out-of-network ATMs and cash deposit fees if you deposit cash in-store through the Green Dot® Network.

Sign up to Help Your Money Grow

OK, that was a lot of information, so here’s a quick rundown:

  • When you download the Varo app, you’ll sign up and gain access to a banking and savings account. You’ll now manage your money with the tap of your thumb.
  • All you need to earn interest on a savings account? One penny.
  • You won’t get hit with any sneaky fees.
  • Your savings account lets you tap into some powerful compound interest — way above the average national rates.

Interested in signing up? Download the Varo Money app, create a profile, complete the five-minute application and start enjoying that sweet, sweet earned interest!

*APY is accurate as of April 1, 2019. This rate is variable and may change. No minimum balance required to open account. Balance in savings must be at least $0.01 to earn interest. Deposits are FDIC insured to at least $250,000 through The Bancorp Bank; Member FDIC.

Carson Kohler ([email protected]) is a staff writer at Codetic. She gets all nerdy and excited when reviewing bank accounts.

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